SANGLI BANK LTD Vs. MOHAN HIRACHAND SHAHA

JUDGEMENT

(1.) THE plaintiff-Bank has come up in this appeal aggrieved by a portion of the judgment dt. 1-4-1997 and the decree passed therein by the Court of Civil judge and Asst. Sessions Judge, Athani in o. S. No. 252/1993. The parties herein would be referred as per the ranks they had in the trial Court.

(2.) IT is not in dispute that the plaintiff bank had given financial assistance of rs. 1,50,000. 00 to the defendants 1 to 3; the defendants 4 and 5 are the sureties. When the defendants committed default in the payment of the loan and the interest accumulated thereon, the plaintiff was constrained to file a suit for the recovery of a sum of Rs. 2,73,634. 74.

(3.) THE defendants 1 and 2 resisted the claim of the plaintiff-bank by filing their written statement. The defendants 3 to 5 remained ex parte. The trial Court framed as many as 8 issues and answered them in favour of the plaintiff to a great extent. The trial Court decreed the suit by holding that the plaintiff is entitled to recover an amount of Rs. 1,50,000. 00 from the defendants 1 to 5 with interest at the rate of 16. 5% from 24-3-1984 (date of disbursement of the amount)till the filing of the suit without charging compound interest, penal interest and d. I. G. G. C. fees and by giving deductions to the amounts credited by the defendants in their loan account. Further the trial Court granted the pendente lite and future interest at the rate of 6% p. a. The trial Court has also moulded the relief by permitting defendants 1 and 2 to repay the amounts due in 5 equal installments commencing from 1-6-1997 onwards with single default clause.